Barclays 2015 Annual Report Download - page 243

home.barclays/annualreport Barclays PLC Annual Report 2015 I 241
Year ended 31 December 2015 Year ended 31 December 2014
Net interest
income
£m
Average
customer
assets
£m
Net interest
margin
%
Net interest
income
£m
Average
customer
assets
£m
Net interest
margin
%
Personal and Corporate Banking 6,438 214,989 2.99 6,298 210,026 3.00
Barclaycard 3,520 38,560 9.13 3,044 34,776 8.75
Africa Banking 2,066 34,116 6.06 2,093 35,153 5.95
Total Personal and Corporate Banking, Barclaycard
and Africa Banking 12,024 287,665 4.18 11,435 279,955 4.08
Investment Bank 588 647
Head Office (303) (216)
Barclays Core 12,309 11,866
Barclays Non-Core 249 214
Group net interest income 12,558 12,080
Total PCB, Barclaycard and Africa Banking net interest income increased
5% to £12.0bn due to an increase in average customer assets to
£287.7bn (2014: £280.0bn) with growth in PCB and Barclaycard, partially
offset by reductions in Africa Banking as the ZAR depreciated against
GBP. Net interest margin increased 10bps to 4.18% primarily due to
growth in interest earning lending within Barclaycard.
Group net interest income increased to £12.6bn (2014: £12.1bn)
including structural hedge contributions of £1.5bn (2014: £1.6bn).
Equity structural hedge income decreased driven by the maintenance of
the hedge in a continuing low rate environment.
Net interest margin by business reflects movements in the Group’s
internal funding rates which are based on the cost to the Group of
alternative funding in wholesale markets. The internal funding rate prices
intra-group funding and liquidity to give appropriate credit to businesses
with net surplus liquidity and to charge those businesses in need of
alternative funding at a rate that is driven by prevailing market rates and
includes a term premium.
Margins analysis
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